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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Area51 who wrote (58172)	1/8/2000 4:39:00 PM
From: Taylor Mill	Respond to of 95453

Area51 "I think this comment may be in error: Speed lowers costs. The average cost of finding and bringing a deposit of oil to production is now $3 to $4 a barrel. And that holds for remote seas off Africa as well as the Gulf of Mexico. Previous data I have read (e.g. - wtrg.com indicates a finding cost of $2 (middle east) to $4 per barrel, and lifting costs of an additional $3 - $4 per barrel. The average US cost to find and produce was listed as $8.60 per barrel." I don't see what you mean is in error. Are you comparing the $8.60 to the newspaper's $3-$4 ??? That would be wrong --- lifting costs are the recurring monthly operating costs and are never considered to be a part of finding costs. Thus as long as you don't include finding costs in the comparison, the data from the two different sources are reasonably in synch.